The fact are that pursuant to the policy dated
September 12, 1983, industrial units based on various forest
produce
i.e. Khair Wood were allowed to be set up in the
State. an association of the industries. The Government gave
relaxation on February
25, 1984 giving liberty to the
Director of Industries to encourage small scale industries
on the ground that those who
would not operate their
industries from the forest wood may be considered for the
licence and that they would purchase
`khair wood from
outside the State. The respondent No.4 had given provisional
registration of his proposed S.I. units for a period
of one
year on February 11, 1986.

The Government thereafter introduced complete ben on
registration from December 11, 1986. The appellant
Association
had applied for cancellation or relaxation of
the ban imposed including the 4th respondent but the
Director refused to
the same. Consequently, the appellant
filed a writ petition in the high Court. The Division Bench
of the High Court of Allahabad
in order dated May 3, 1991 in
Writ Petition holding that the matter doing one of policy
taken by the Government at the highest
that the matter being
one of policy taken by the Government at the highest level,
the Court was not inclined to examine the correctness
of the
policy. Accordingly it declined to pass any direction as
sought for.

It is contended rot the appellant that the Government
having allowed other units to obtain Khair wood from the
Government
quota, denial of the same to S.S.I. units
registered under provisional registration would be
discriminatory violative
of Art 14 of the Constitution.

Having given our anxious consideration to the conventional
of the counsel and the argument of Shri Mehta learned
counsel for
the 4th respondent, we are of the view that it
is not a fit case for our interference. If is seen, as
stated in the counter
filed in this Court, that the
Government had constituted a committee to which the
Secretary Forest was the Chair-person.
It had met on
December 13, 1990 and had decided that small scale units
registered prior to December 11, 1986 were entitled
to be
considered for allotment and any unit registered thereafter
would be allowed to operate only subject to their obtaining
required
wood from outside the State. It is seen that in
view of non-availability of the forest produce in the State
of U.P. the Government
constituted a committee and the
Secretary Forest Department was its Chair-person. They had
gone into the question of availability
and allotment of
Khair wood in the State. They have imposed a cut off date,
i.e., December 11, 1986 and allotment would be made,
subject
to the availability of forest produce, to those industries
established prior to the aforesaid date. It is true, as
stated in the order passed by the Director, that S.I. units
registered after September 12, 1983, were allowed
registration
by proceedings dated February 25, 1984 with a
condition that they will not apply for U.P. forest wood, and
they would get it from
outside the State. Even in respect of
such industries it was also further stated that though the
Director of Industries granted
provisional registration. It
would only be until or before December 11, 1986. In other
words, complete ban on registration
of S.I. units was
imposed on or after December 11, 1986 for allotment of the
forest produced required for industries.

Under these circumstances, it being a policy decision
we do not think that it would be a case for our
interference.
The High Court has rightly declined to
exercise its powers.

The appeal is accordingly dismissed. No costs.

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